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Si_

Flats Only Being Built

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Article in the local rag ( Bournemouth Advertiser ) stating that in 94/95 new properties around here were built 50/50 flats/houses. In the last few years 97% are flats. Article goes on to state that that is to continutue with around 700 new residences (all bar a couple flats luxury apartments) to be built each year in Bournemouth.

With a lot of families around here, you would expect that the market wants as many houses as flats and the 94/95 mix was about right. Strangely, the new build flats (aka lux aparts) cost around £220-270 whereas you can get a nice 3-bed semi with a garden in a nicer area for less? This strikes me as bizarre.

I can only imagine that house prices will remain high for the time being and flats here are an extreme risk of a large correction.

Si

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I agree with you :) although government thinks that the trend that people will live on there own will continue and demand for big houses will drop. Of course with flat prices so high, how can a single person or even a couple live in one?

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I agree with you :) although government thinks that the trend that people will live on there own will continue and demand for big houses will drop. Of course with flat prices so high, how can a single person or even a couple live in one?

The main reason for the increase in building of flats is planning policy. Developers are required to maximise the density of the development by planning laws and flats are the obvious way to do this. The Government doesn't care two hoots about what sort of properties people actually want, they just want to cram us into as small a place as possible.

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There aren't enough decent family homes in the South full stop, which is why I find it very hard to believe that their value is going to crash.

The price of flats everwhere dropping is plausible and I also find it plausible that house prices generally away from London and the South might drop (the gap between North/South house prices is far below what it was pre 2000). However I just can't see family homes in the South losing value.

When is a bubble not a bubble? When there is actually a genuine long running under supply of the commodity in demand, that isn't going to go away.

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There aren't enough decent family homes in the South full stop, which is why I find it very hard to believe that their value is going to crash.

The price of flats everwhere dropping is plausible and I also find it plausible that house prices generally away from London and the South might drop (the gap between North/South house prices is far below what it was pre 2000). However I just can't see family homes in the South losing value.

When is a bubble not a bubble? When there is actually a genuine long running under supply of the commodity in demand, that isn't going to go away.

Ok, so if flats in the South East of England drop 30% how are the people in the flats now going to buy the family houses? And if nobody can afford to buy family houses when people want MEW or older people want to downsize, what do you think will happen to the price of family houses?

A crash in one segment of the market will inevitably make it's way to the other segments. Very few people walk out of rented accomodation into a 4 bed house in London, sure it does happen to a minority of people who come into money suddenly (bonus, inheritance) but generally people work their way up the ladder. A crash in flats just removes 3 or 4 rungs... ;)

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Redalert,

When I said drop I was thinking of something more modest than a crash, if that were to happen you're quite right no sector of the property market would be an island.

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As a single bloke who never wants kids its great to see more flats being built in the city centers.

I would love to live there and have no need for massive gardens or places to wash my car at the weekends.

Infact whats the point in having a car if I live so close to my job.

Maybe I will change my tune in the future, but for now, city center appartment living seems perfect.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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